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District presents draft 2025–26 budget; warns of lower state and federal revenue, asks county for $2.4 million
Summary
Finance staff outlined a draft 2025–26 budget projecting a decrease in state funding tied to lower ADM, a potential $3.8 million federal funding drop, and a county request of $2.4 million; staff warned the district cannot sustain continued use of fund balance.
Rockingham County Schools staff presented the first draft of the proposed 2025–26 budget, warning of reduced state and federal revenues, expected increases to retirement and health costs, and a county funding request to close the gap.
Finance staff member Annie Ellis presented enrollment and revenue assumptions, saying the district’s average daily membership (ADM) will be calculated on 11,163 students for the current year while the draft budget uses an estimated ADM of 10,885—about a 278‑student decrease. "Anytime you see a decrease in students, that equals a decrease in state funding," Ellis said. The presentation assumed a 3% salary increase in budgeting scenarios and estimated a roughly 5% increase in retirement contributions and employer health‑plan matching.
Ellis told the board the district anticipates about a $3.8 million drop in federal funding largely because ESSER funds are expiring and said the local fund balance is no longer large enough to offset state revenue shortfalls as in past years. The district’s initial request to county commissioners is for $2.4 million in additional local support; staff emphasized the need to avoid continued reliance on fund balance and said the finance committee will work with directors to refine priorities.
Ellis described other cost pressures: rising utility and foodservice costs, the need to refresh student Chromebooks, and an anticipated replacement for the district telephone system. She also said the state health plan is considering a premium structure based on salary; under one proposal higher‑paid employees could see larger premium increases.
Board members asked for greater detail on personnel costs and health premium scenarios; Ellis said more analysis will be provided to the finance committee and at upcoming work sessions. The proposed budget will return to the board for approval in March before the district meets with county commissioners.
